According to Kela, the Finnish Social Insurance Institution, the average student earns 7 720 € in a year. The sum includes all social benefits except study grant. Compared to the average income of a Finnish employee in the private sector, which according to Statistics Finland is 3 503 € in a month, the sum seems extremely low. The average student in Finland has five times less money to spend and the Finnish government has already decided to cut down the study grant by 25 %. But somehow we have to manage the situation. So you could say that where ever you can save some money it’s always good. Here are three small but useful tips on how to keep your personal finance in check as a student.

1.Shop smart

It really does matter where you shop your groceries. According to Helsingin Sanomat, the difference between the cost of a bag of groceries can be more than 50 %. You shoud befinitely favour big super markets over smaller shops. Also it matters a lot what you buy from the store. For example a litre of milk costs a lot less than the same amount of beer. Another way to save money is by not buying things that you do not need.

2. Invest for future

When ever you have even the smallest amount of extra money it’s always a good idea not to spend it but rather save it for a rainy day. Even better if you can invest those savings and earn a profit from those savings. Jukka Oksaharju, a stock market strategist for Nordnet, suggest that the best way to invest your money would be by putting them into a index fund. Index funds usually have low cost of management and a steady interest rate therefore the risk is rather low. A small of investment of 20 € a month can grow within ten years up to more than 3000 € with a seven percent interest rate.

3. Loans

Sometimes you face the situation in which your income just is not enough. A quickie loan might sound tempting but it can be a terrible mistake. The interest rate in those type of loans are ridiculous and sometimes even illegal. A student loan from a bank most likely is a far more reasonable choice because the much more lower rate of interest. Also as a student you are entitled to a student loan compensation which means that the government will pay part of your loan if you graduate in time from your school.